Magazine : Archives : 2nd Quarter 2006

Getting Serious about Health Savings Accounts

Banks worried about the technological or operational costs of supporting health savings accounts need not fear. Though the complexity of the accounts may have kept some banks from offering them in the past, early-adopter banks say the basic technology requirements for HSAs are not onerous. That is, unless you plan to offer a product to outclass the burgeoning competition. After a slow start, tax-advantaged HSAs, which became available in January 2004 and allow consumers to sock away pretax funds for medical expenses, are starting to take off. More than 600 banks now offer the accounts, according to Information Strategies Inc.,...